Automakers in the European Union argue that emissions targets and penalties for 2025 will hit production. The cap on average emissions from new vehicles is set to tighten from 116g/km in 2024 to 94g/km in 2025.
Fines of €95 per excess CO²g/ km can be imposed for exceeding the limits. When that is multiplied by the number of vehicles sold, it becomes a very hefty penalty. Potentially that could mean the automakers have to halt production of around two million cars. The European Automobile Manufacturers Association (ACEA) is calling for flexibility and a two-year delay of the 2025 targets.
“If electric vehicles remain at today’s level, the European industry may have to pay €15 billion ($17 billion) in fines or give up the production of more than 2.5 million vehicles,” Renault CEO Luca de Meo told France Inter radio. He is also president of ACEA.
Battery manufacturers have said the emissions target will be terrible for European battery makers and could force some automakers to go bankrupt. Christophe Pillot, director of consulting firm Avicenne, told BEST it may be possible the European targets will not be met and the EU may need to change them.
“Maybe the EU will delay some of their targets. I’m not sure it’s all possible” he said. He added the EU target for ending the sale of new ICE cars by 2035 is unrealistic: “For the car market, for the battery market, and for the equipment market – well it’s difficult,” he added.
The EU has mandated that EVs account for 20% of overall vehicle sales this year, rising to 80% by 2030 and 100% by 2035.
At this week’s European Lead Battery Conference in Milan, Italy, industry participants said price remains an issue but expect the upward trend in EV market penetration will continue. Pillot said in his presentation the full EV market (passenger and commercial vehicles) will count some 50 million vehicles in 2035, up from 30 million in 2030.
